China securities regulator moving to provincial job - sources

March 13, 2013|Reuters

HONG KONG, March 14 (Reuters) - China's top securitiesregulator, Guo Shuqing, will be moved from his post soon andtake over as governor of eastern Shandong province, a shiftprompted partly because his market reform drive has upset vestedinterests, said two sources with direct knowledge of the move.

Since taking over as head of the China Securities RegulatoryCommission (CSRC) in late 2011, Guo has launched a campaignagainst rampant insider trading and other market malpractice,including seeking to reform how initial public offerings areapproved. Critics have said the current system gives anadvantage to those with political connections.

"Guo Shuqing has done some reforms at the CSRC upsettingsome interest groups, especially interest groups that benefitfrom the IPO process," said a source with ties to the seniorleadership in Beijing. "However, Guo himself also wants to go towork at the provincial level, and is willing to go to Shandong."

Reuters reported last week that 56-year-old Guo had beenoffered the job as head of China Investment Corp (CIC),the country's sovereign wealth fund, but had expressedreluctance to take that post.

Reached for comment about Guo's mooted move to Shandong, thenews office of the CSRC said: "We don't know the situation.We've seen the rumours, but we haven't received relatedinformation."

Xiao Gang, chairman of Bank of China ,the country's fourth-largest bank by assets, is a leadingcandidate to replace Guo at the CSRC, the other source said.

Spending time in a senior post at the provincial level is acommon career move for China's rising officials, oftenconsidered necessary for moving into the most senior positionslater. However, as provincial governor, Guo will be thesecond-ranking official in the agricultural and industrial baseof Shandong, behind the Communist Party boss.

A financial industry source said Guo was once considered themost ideal candidate for the post of central bank governor ashis "resume was complete". Guo previously served as chairman ofChina's second-largest bank, China Construction Bank , and was vice governor of the impoverishedsouthwestern province of Guizhou.